A stock with a beta of 1.0 will:
A)always generate a return equal to the market average.
B)always generate a return that is close to the market average.
C)always generate a return that is at least as large as the market average..
D)All of the above are correct.
E)None of the above is correct.

Question

Quizplus · Accepted Answer

A stock with a beta of 1.0 indicates that its returns are expected to move in line with the market, but it does not guarantee that the returns will always be equal to or close to the market average.

A Stock with a Beta of 1.0 Will